BS/020625/SH-Kickoff(2000)CONFIDENTIALImproveRollChangeTimeatHRCLeanmanufacturingpilotkick-offdocument–RollchangemoduleThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.July1,2002BS/020625/SH-Kickoff(2000)2TABLEOFCONTENT•DiagnosticresultsofrollchangeimprovementpotentialatHRC•Aspirations,approachesandworkplanforrollchangeimprovementatHRCBS/020625/SH-Kickoff(2000)3TABLEOFCONTENT•DiagnosticresultsofrollchangeimprovementpotentialatHRC•Aspirations,approachesandworkplanforrollchangeimprovementatHRCBS/020625/SH-Kickoff(2000)4WORKROLLANDBACKUPROLLCHANGESREQUIRESSIGNIFICANTAMOUNTOFTIMEANDISABIGPORTIONOFPLANNEDDOWNTIME876035041394028454067734366233121560857975056(365)days1517391228223360*241568**233HoursImprovementpotentialareaImprovementpotential:1,527H3552***23210274186570Sixmaintenancesfor59hourswereaddedduetoreplacementofcrossingin2001*Thespeedlossastheactualspeednotachieveaveragespeed(426hour);singlefurnace/machineoperationcalculatedas1/3loss10hour)**FinalblockrateWithscrapededucted**incl.rework,downgrade,unplannedWIP(Replenishmenthoursdeducted)Source:Baosteel;McKinseyanalysisNetvaluableproductiontimewith75%capacityutilizationachievedRe-worktimeYield(incl.Scrap)Speedloss*TotalOpera-tingtimeUn-planneddowntimeTotalavail-abletimeBackuprollchangetimeWorkrollchangetimePlannedmain-tenanceAnnualmain-tenanceTotalcalendarhourEffectiveoperatingtimePlannedproductiontimerate77.3%Availabilityrate92.0%Performancerate93.0%Qualityrate87.2%OEE=NetvaluableproductiontimeTotalavailabletime=74.6%Capacityutilization=PlannedproductiontimerateXOEE=57.7%Bestpractice80-85%70-75%Repleni-shmenthoursNetproduc-tiontimeNetvaluableproductiontime1,580capacityutilizationandOEEBS/020625/SH-Kickoff(2000)55897125120636021869365762688393573608760WORKROLLANDBACKUPROLLCHANGESREQUIRESSIGNIFICANTAMOUNTOFTIMEANDISABIGPORTIONOFPLANNEDDOWNTIME*Thespeedlossastheactualspeednotachieveaveragespeed(194hour);singlefurnace/machineoperationcalculatedas1/3loss(24hour)**FinalblockrateWithscrapededucted**incl.rework,downgrade,unplannedWIP(Replenishmenthoursdeducted)Source:Baosteel;McKinseyanalysis(365)days151535112892426525555237Hours6142**Improvementpotential:1204H532***5365657022274223*OEE=NetvaluableproductiontimeTotalavailabletime=77.4%Capacityutilization=PlannedproductiontimerateXOEE=61.2%Bestpractice80-85%70-75%Plannedproductiontimerate79.2%Performancerate96.6%Qualityrate87.4%Availabilityrate91.7%Netvaluableproductionwith75%capacityutilizationachievedRe-worktimeYield(incl.Scrap)Speedloss*TotalOperatingtimeUnplanneddowntimeTotalavail-abletimeBackuprollchangetimeWorkrollchangetimePlannedmain-tenanceAnnualmain-tenanceTotalcalendarhourEffectiveoperatingtimeReplenish-menttimeNetproduc-tiontimeNetvaluableproductiontimeImprovementpotentialarea2,050capacityutilizationandOEEBS/020625/SH-Kickoff(2000)6840504420WORKROLLCHANGETIMEATHRCHASHUGEPOTENTIALFORIMPROVEMENT*ChecktimenotincludedSources:BaosteelLtd.;Baosteelinternalinterview;McKinseyexpertinterview;Fieldviewandtimecountingofrollchanging1580timeofchangingworkrollHours81554343520012050timeofchangingworkrollHoursRecentim-...